March NY world sugar #11 (SBH23) on Friday closed down -0.14 (-0.71%), and March London white sugar #5 (SWH23) closed down -5.50 (-1.02%).
Sugar prices Friday posted moderate losses on increased sugar output in India. Â The India Sugar Mills Association (ISMA) Friday reported that India's Oct-Nov sugar production rose +1.5% y/y to 4.79 MMT. Â India is the world's second-largest sugar producer. Â Also, a more than -1% fall in crude oil prices (CLF23) Friday weighed on sugar prices. Â Lower crude prices undercut ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol, thus boosting sugar supplies.
Sugar prices were already on the defensive from Thursday when StoneX boosted its global 2022/23 sugar surplus estimate to 5.2 MMT from a Sep estimate of 3.9 MMT. Â StoneX also predicts Brazil's 2023/24 Center South sugar production will climb +5.2% y/y to 35.6 MMT.
Increased sugar production in Brazil is bearish for prices after Unica reported last Friday that Brazil's Center-South sugar output in the 2022/23 marketing year through mid-November rose +0.3% y/y to 31.966 MMT. Â Also, the Organization of Cane Producers Association in Brazil forecasted last Monday that Brazil's sugar output in 2022/23 at 36.9 million metric tons due to favorable weather and that production would reach 37.2 million metric tons in 2023/24.
Higher sugar output in India is bearish for prices. Â On Oct 24, the ISMA forecasted that India's 2022/23 sugar production (Oct 1-Sep 30) would climb +2% y/y to 36.5 MMT as Indian farmers boosted their planted cane acreage by +5.4% y/y to 5.6 mln hectares. Â In 2021/22, India's sugar production rose +2.9% y/y to 35.8 MMT. Â Also, robust sugar exports from India are bearish for prices after India 2021/22 sugar exports jumped +57% y/y to a record 11 MMT. Â However, the Indian Sugar Mills Association earlier this month said that India's sugar production from Oct 1 to Nov 15 fell by -4.3% y/y.
In a bearish factor, the International Sugar Organization (ISO) last Tuesday projected that global 2022/23 sugar production would climb +5.5% y/y to a record high of 182.1 MMT. Â Also, ISO projected that the 2022/23 global sugar market would be in a surplus of +6.2 MMT.
More Sugar News from Barchart
- Cocoa Prices Settle Mixed on Dollar Weakness and British Pound Strength
- Coffee Prices Slip on Stronger Dollar
- If You Like Plant-Based Food Stocks, It’s a Case of Buy This, Not That
- NY Cocoa Gains as ICCO Cuts Global 2021/22 Cocoa Production
/Oracle%20Corp_%20office%20logo-by%20Mesut%20Dogan%20via%20iStock.jpg)
/A%20concept%20image%20of%20space_%20Image%20by%20Canities%20via%20Shutterstock_.jpg)
/A%20photo%20of%20a%20Sandisk%20Solid%20State%20Drive%20by%20Top%20Popular%20Vector%20by%20Shutterstock.jpg)